Earned value management is a rather critical aspect to consider in the process of creating a project. This approach helps in tracking and calculating the schedule, cost, and scope to measure the performance (“Earned value management”, n.d.). Moreover, the studied aspect of management in the organization helps to predict the future of the plan being implemented and allows for making changes if necessary (Babar et al., 2017). Hence, earned value management helps to achieve the most successful results during the project. Earned value analysis becomes an integral part of EVM, which is designed for a more detailed evaluation of the project and calculation of schedule and cost variations.
Therefore, a request was received to execute the plan ahead of schedule while maintaining a low cost. To achieve this factor, it is necessary to calculate what the earned value should be. So, to do this, multiply the percentage complete by the total project budget. For example, 70 percent of the finished project needs to be multiplied by 50 thousand dollars of the budget, which represents the earned value of 35 thousand dollars. To calculate the schedule variation, you need to subtract the planned value from the earned value. That is, this indicator will be for a four-month-long project, with two months in, 2 – 1= 1. This negative indicator will mean that the project is going faster than scheduled. Thus, to overtake the schedule and not waste financial resources, it is necessary to follow these indicators.
This answer is of particular value in the question under study since it represents the necessary amount of information while not overloading the reader. Moreover, providing information in the form of a table can greatly facilitate perception. However, in some cases, the use of this method may require some critical information that would define what is presented in more detail. At the same time, this response can be called good since it uses the knowledge of the class.
References
Babar, S., Thaheem, M. J., & Ayub, B. (2017). Estimated cost at completion: Integrating risk into earned value management. Journal of Construction Engineering and Management, 143(3).
Earned value management: The basics. (n.d.). Hexagon.